Marimon, Ramon; Nicolini, Juan Pablo; Teles, Pedro - C.E.P.R. Discussion Papers - 2009
money. With commitment, trust is automatically achieved and competition ensures efficiency. Without commitment, competition …, therefore, the Friedman rule cannot be achieved. The quality of money can only be observed after its purchasing capacity is … realized. In that sense money is an experience good. We show that the two problems, the time-inconsistency in the private …